Colin Kaepernick is willing to take a pay cut to play for the Denver Broncos, just not one as large as the reigning Super Bowl champions would like.
The Broncos are offering Kaepernick an annual salary of $7 million for the 2016 season and the 2017 season, a source close to the situation told CSNBayArea.com on Tuesday.
Kaepernick and the Broncos have "made progress" on a contract that would run through 2020, ESPN's Adam Schefter reported on Monday.
But the finances over the first two years are not favorable for Kaepernick. Agreeing to Denver's offer would cost the 28-year-old quarterback $12.4 million in base salary, and potentially as much as $16.2 million, over the next two years. His current contract with the 49ers pays a base salary of $11.9 million for the 2016 season and $14.5 million in 2017.